October / November, 2012 JBS S.A.

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1 October / November, 212 JBS S.A.

2 JBS S.A.

3 JBS S.A. at a glance Founded in the 195 s in Midwest of Brazil IPO in 27 Leading protein producer in the World Net Revenue of R$34.5 billion in 1 st semester of 212 EBITDA of R$1.7 billion in 1 st semester of 212 Net revenue organic growth of 18% in 1 st semester of , employees worldwide 31 production units in 5 continents PAGE 3

4 1 Market Leader JBS Ranking 2 Track Record of successful acquisitions 3 Geographic and market segment diversification 4 Well-recognized brands 1 st 1 st 1 st Largest global beef and lamb producer Largest global leather processor Largest global chicken producer 3 rd Largest pork producer in the US Source: JBS PAGE 4

5 1 Market Leader Merger and Acquisition track record More than 3 acquisitions in 15 years 2 Track Record of successful acquisitions 3 Geographic and market segment diversification 4 Well-recognized brands Barra do Garças (Sadia) JBS went international with the acquisition of Swift Argentina. JBS became the largest beef company in the world and the biggest Brazilian company in the food industry and entered the US pork market. Construction of a sustainable global meat production and sales platform. Diversification of market segments through the acquisition of Pilgrim s Pride and merger with Bertin. JBS Swift became the leader in lamb production in Australia. Andradina (Sadia) Barretos (Anglo) Pres. Epitácio e Campo grande (Bordon) Araputanga (Frigoara) Cáceres (Frigosol) Iturama (Frigosol) Inalca Swift Foods Co. Maringá (Amambay) Berazategui (Rio Platense) Colonia Caroya SB Holdings JV Beef Jerky Rio Branco Cacoal 1 Venado Cacoal 2 Tuerto Porto Velho Pontevedra Vilhena (CEPA) (Frigovira) Pedra Preta (Frigo Marca) Rosário San Jose (Swift Argentina) 7.2 Tasman Smithfield Beef Five Rivers Pilgrim s Pride Merger with Bertin JBS Couros 5 new units Rockdale Beef Tatiara Meat (Swift Austrália) Net revenue (USD billion) Source: JBS PAGE 5

6 1 Market Leader Diversified market segments 2 Track Record of successful acquisitions Beef 3 Geographic and market segment diversification Transportation Pork 4 Well-recognized brands Leather Chicken Biodiesel Lamb Collagen PAGE 6

7 1 Market Leader Presence in more than 1 countries, in 5 continents Strategic Geographical Distribution 2 Track Record of successful acquisitions 3 Geographic and market segment diversification 4 Well-recognized brands 3 Pork 39 Chicken 2 Biodiesel 64 Distribution Center 31 Slaughterhouses and Production Units 61 Beef 6 Lamb 29 Leather 17 Sales Office Geographic Presence and Production Capacity Beef 81,4 heads/day Chicken 8.3 mm birds/day Pork 5,1 heads/day Leather 86,3 hides/day Lamb 18,265 heads/day Source: JBS PAGE 7

8 Our Strategy RATIONALE Branding Value added products Associating quality and branding to increase client loyalty Customized and further processed products for the end users Sales and distribution platform Expanding a global distribution platform to reach end clients Production platform Developed an efficient and diversified global production platform Financial Structure Experienced Management Cost reduction, process optimization Risk Management JBS s Value & Strategy EBITDA Margin PAGE 8

9 1 Market Leader Well-recognized Brands, symbols of quality 2 Track Record of successful acquisitions 3 Geographic and market segment diversification Brazil Argentina 4 Well-recognized brands USA Australia PAGE 9

10 Perspectives for the animal protein market

11 Global consumption of animal protein has been increasing Consumption growth by region over the past ten years North Asia North America +7.5% E.U % +47.7% Middle East +41.4% +23.7% East Asia Central America +29% +7.2% +32.2% Southeast Asia +48.7% South America Oceania +23.3% Africa Source: Rabobank, 21. PAGE 11

World s Food* Surpluses and Deficits Net intra-regional trade, million tonnes Central America Western Europe Asia Middle East & Africa North America South America Australia

12 World s Food* Surpluses and Deficits Net intra-regional trade, million tonnes Central America Western Europe Asia Middle East & Africa North America South America Australia Eastern Europe and former Soviet Union * Cereals, rice, oilseeds, meals, oils and feed equivalent of meat. Source: The Economist PAGE 12

13 Global Protein Consumption Growth by Species Strong Global Industry Fundamentals (MT in mm) Source: USDA FAS PAGE 13

14 Global Beef Trade Largest Beef Exporters Others 12% Brazil 17% Argentina 3% Uruguay 4% Canada 5% Australia 17% E.U 6% New Zealand 6% India 14% USA 16% Source: USDA 211 (Estimated) PAGE 14

15 Brazil, Australia and the US continue to lead global beef exports Brazilian Beef Exports (tons) Australian Beef Exports (tons) % % S11 1S12 US Beef and Veal Exports (tons) % -.2% S11 1S % -11.4% S11 1S Source: USDA, MLA & Secex Beef and Veal exports Average Price (US$/Ton) PAGE 15

16 Chicken Exports Brazil vs US Brazilian Chicken Exports (tons) USA Chicken Exports (tons) % % % % S11 1S S11 1S12 Chicken Exports Average Price (US$/Ton) Source: USDA & Secex PAGE 16

17 Pork Exports US vs Brazil Brazilian Pork Exports (tons) USA Pork Exports (tons) % % % % S11 1S S11 1S12 Pork Exports Average Price (US$/Ton) Source: USDA & Secex PAGE 17

18 Global Surplus (deficit) Goldman Sachs forecast for animal protein in 22 Beef & Veal Pork Chicken Surplus Deficit Source: Goldman Sachs PAGE 18

19 2Q12 Highlights

20 2Q12 Highlights JBS posted consolidated net revenue of R$18.5 billion, 26.3% higher than 2Q11. Consolidated EBITDA was R$1,12.8 million which represents an increase of 72.3% compared to 2Q11. EBITDA margin was 5.5%. JBS Mercosul was highlight during the quarter reporting net revenue of R$4,317.7 million, an increase of 19.4% over 2Q11. EBITDA increased 47.3% over the same period and was R$63.3 million, EBITDA margin was 14.6%. JBS USA Chicken (Pilgrim s Pride Corporation) posted net revenue of US$2. billion and EBITDA of US$125.7 million in the period, reversing the negative result presented in 2Q11. Adjusted net Income in the period was R$212.9 million excluding deferred income tax liabilities generated by goodwill (this only generates effective income tax payment if the company sells the investment that generated goodwill). Consolidated reported net income was R$169.5 million. The Company ended the quarter with R$5.475 billion in cash or cash equivalent, corresponding to more than 11% of short-term debt. PAGE 2

21 JBS Consolidated Results 2Q12 Net Revenue (R$ million) EBITDA EBITDA and EBITDA Margin (R$ million) 14, , , , , , 16, 14, , +1.3% +8.8% -5.5% +15.3% 12, 1, 8, 6, 4, % +19.5% -26.% % 1,12.8 2, 2Q11 3Q11 4Q11 1Q12 2Q12, 2Q11 3Q11 4Q11 1Q12 2Q12-12, EBITDA Margin (%) Source: JBS PAGE 21

22 ,% 14,% 12,% 1,% 8,% 6,% 4,% 2,%,% -2,% -4,% -6,% -8,% -1,% ,% 14,% 12,% 1,% 8,% 6,% 4,% 2,%,% -2,% -4,% -6,% -8,% -1,% -12,% -14,% -16,% -18,% -2,% -22,% -24,% -26,% -28,% -3,% 13, 122, 114, 16, 98, 9, 82, 74, 66, 58, 5, 42, 34, 26, 18, 1, 199,977 99,977 -,23 13,% 9,% 5,% 1,% -3,% -7,% -11,% -15,% -19,% -23,% ,% 7,% 5,% 3,% 1,% -1,% -3,% -5,% -7,% -9,% -11,% -13,% -15,% -17,% -19,% -21,% -23,% -25,% Quarterly Analysis Performance by Business Unit JBS Mercosul JBS USA (Including Australia) JBS USA JBS USA (PPC) Net sales (R$ billion) Net sales (US$ billion) Net sales (US$ million) Net sales (US$ billion) Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 EBITDA (R$ million) EBITDA (US$ million) EBITDA (US$ million) EBITDA (US$ million) 11.8% 11.6% 1.7% 13.3% 14.6% % % 4.4% -1.1% -.2% % 8.8% 8.3% 6.5% 5.8% % 6.4% 1.2% -2.4% -1.7% Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 2Q11 3Q11 4Q11 1Q12 2Q12 EBITDA Margin (%) Source: JBS PAGE 22

23 JBS Consolidated Exports Distribution in 1S12 Approximately US$4.4 billion Mexico 15.5% Others 15.1% Venezuela 1.9% Taiwan 2.1% China, Hong Kong and Vietnam 14.6% Chile 3.6% US$4,387 million Canada 4.8% Japan 11.7% E.U 6.1% Russia 9.3% South Korea 6.2% Africa and Middle East 9.1% Source: JBS PAGE 23

24 Debt Profile 2Q12 Net debt to EBITDA was 4.27x. The Company ended the quarter with R$5.475 billion in cash or cash equivalent, which represents more than 11% of short-term debt. The percentage of short term debt decreased from 27% in 1Q12 to 23% in 2Q12 Leverage ST / LT Debt Profile Q11 28% 72% Q11 28% 72% Q12 27% 73% Q11 3Q11 4Q11 1Q12 2Q12 2Q12 23% 77%. Leverage EBITDA. Short Term Long Term Source: JBS PAGE 24

25 Debt Maturity Schedule and Profile Net Debt: 15,276.9 (R$ million) Short Term Net of Cash and after ,381 2, ,738 4,469 3,726 Breakdown by Currency and Company Bonds / Other 2Q12 JBS S.A. 57% Subsidiaries 43% 2Q12 Bonds 37% Other 63% 2Q12 R$ 25% USD 75% Source: JBS Financial Statements 2Q12 PAGE 25

JBS Institute funds Germinare School Social Responsibility Social GERMINARE SCHOOL Started in 21 Germinare School is a social initiative of the JBS Institute which

Purpose: to prepare well-educated and well-rounded citizens with a broad cultural repertoire, sound ethical values and a positive attitude toward life and society.

26 JBS Institute funds Germinare School Social Responsibility Social GERMINARE SCHOOL Started in 21 Germinare School is a social initiative of the JBS Institute which looks at Education as the principal instrument to transform society. Purpose: to prepare well-educated and well-rounded citizens with a broad cultural repertoire, sound ethical values and a positive attitude toward life and society. Classroom Number of students (211): 27 Capacity of 63 students. Social Top Brazilian professors. Area: 6, m 2 Sport complex, swimming pool, computer lab and chemistry lab. Selection process: tests and group dynamics. Amount invested: R$15 million Laboratory Source: JBS PAGE 26

Environmental Satellite image monitoring of the Amazon Biome Purpose: reduce deforestation in the Amazon Biome; avoid purchasing cattle from Environmentally Protected Areas EPAs, Indigenous reserves

27 JBS actions related to cattle traceability and the Amazon Biome Sustainability JBS SA participates in CDP - Carbon Disclosure Project. Also, JBS integrates the Carbon Efficient Index of BOVESPA - ICO2. Environmental Satellite image monitoring of the Amazon Biome Purpose: reduce deforestation in the Amazon Biome; avoid purchasing cattle from Environmentally Protected Areas EPAs, Indigenous reserves and protected areas; eradication of slave labor in Brazil. Social & Environmental Amazon JBS Brazil monitors a 1% of its cattle suppliers properties via satellite geo-referencing (GPS monitoring). JBS contains a database of almost 12, cattle ranches registered in the Amazon Biome. Satellite image Source: JBS Sustainability Policy (1) Real Time Deforestation Detection (2) Legal Amazon Deforestation Monitoring Project After the property coordinates are collected, the data is keyed into JBS s registry of cattle suppliers and is sent to an outsource company to be analyzed by superimposing on a map constructed from satellite images and the DETER (1) and PRODES (2) produced by Brazil s National Institute for Space Research INPE. PAGE 27

28 Mission To be best in what we set out to do, totally focused on our business, ensuring the best products and services for our customers, solidity for our suppliers, satisfactory profitability for our shareholders and the certainty of a better future to all our employees.

March, 2010 JBS S.A. In God We Trust, Nature We Respect

March, 2010 JBS S.A. In God We Trust, Nature We Respect March, 2010 JBS S.A. 0 In God We Trust, Nature We Respect Our Values Excellence Planning Determination Discipline Availability Openness Simplicity 1 Agenda Company Overview Market Overview 4Q09 Highlights